Activity No. 4: Exercise - Financial Ratios: Liquidity and Solvency Learning Target: To compute and interpret financial ratios Instructions: Compute and interpret all the liquidity and solvency ratios. The balance sheet for the year ended December 31, 2018 of Pangilinan Computer Parts, owned by Mr. Renzo Pangilinan, is given below: Pangilinan Computer Parts Statement of Financial Position As of December 31, 2018 ASSETS LLABILITIES Cash P P 390,000 60,000 300,000 Accounts Payable Income Tax Payable Marketable Securities 160,000 25,000 185,000 Accounts Receivable Total Current Liabilities P Inventory Prepayments Total Current Assets 180,000 17,000 947,000 P Notes Payable Loan Payable P 300,000 450,000 750,000 Total Non-Current Liabilites P Land Equipment Total Liabilities 935,000 Furniture & Fixtures Car P 550,000 142,500 440,000 45,000 P 1,177,500 Total Non-Current Assets OWNER'S EQUITY Pangilinan, Capital Total Equity 1,189,500 1,189,500 P TOTAL ASSETS P 2,124,500 TOTAL LIABILITIES AND EQUITY P 2,124,500 Computations: Current ratio Quick Ratio Working Capital Debt Ratio Equity Ratio Debt to Equity Ratio Interpretations: (Interpret and indicate below all the above ratios)